Taipei: Shares in Taiwan ended slightly higher Monday after profit-taking eroded most of the initial gains amid lingering concerns over stretched artificial intelligence stocks at home and abroad, dealers said. The Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 49.81 points, or 0.18 percent, at the day’s low of 27,447.31, off a high of 27,723.77. Turnover totaled NT$523.41 billion (US$16.8 billion).
According to Focus Taiwan, the market was initially led by the electronics sector as investors took cues from a rebound enjoyed by tech stocks on the U.S. markets on Friday. However, this strength was compromised by the end of the session as many investors shifted to the sell side. Concord Securities analyst Kerry Huang noted that the Taiex faced heavy resistance ahead of the five-day moving average of 27,708, preventing the index from sustaining its earlier gains. Sentiment stayed cautious regarding expensive AI-related stocks amid fears of potential losses in the U.S. markets.
Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), a significant player in the market, gained 1.05 percent to close at NT$1,445.00, despite facing technical hurdles around NT$1,470.00. Other semiconductor stocks showed mixed results, with MediaTek Inc. ending unchanged and ASE Technology Holding Co. declining by 1.12 percent. Memory chip suppliers, such as Nanya Technology Corp., saw a notable rise of 5.05 percent due to a supply shortage.
Other AI-related hardware makers saw declines, offsetting gains posted by semiconductors. Hon Hai Precision Industry Co., a major AI server maker, dropped 2.07 percent, and Quanta Computer Inc. fell 1.25 percent. Nontech stocks largely moved weakly, although major petrochemical stocks attracted bargain hunters. Formosa Petrochemical Corp. rose 3.20 percent, Nan Ya Plastics Corp. increased by 1.62 percent, and Formosa Plastics Corp. added 1.29 percent, while Formosa Chemicals and Fibre Corp. remained unchanged.
The financial sector experienced a decline of 0.67 percent, with Fubon Financial Holding Co. losing 1.61 percent and Cathay Financial Holding Co. down by 1.06 percent. Huang pointed out that AI chip designer Nvidia Corp.’s upcoming results, expected early Thursday morning (Taipei time), will be crucial to gauge the valuation of AI stocks.